Good day everyone! I am your friendly neighborhood SEO writer, Frank, back at it again with another article relating to finance! This time, how soon can you refinance a car loan after purchase? If you have not read my previous articles regarding car loans and refinancing, it might be a good idea to brush up on them as they go in-depth regarding that. But anyway, you may ask yourself this question!
For a person that may want to acquire better conditions for a car loan, but unfortunately already has one, you may want to know if you are able to refinance your car loan immediately to switch. But given that you already have one, you may wonder if there are any specific rules that you would violate in doing so. Well, there is a reason you are here reading my article! We are going to be diving right into that!
How Soon Can You Refinance A Car Loan After Purchase?
Woah there, cowboy! Before we dive right into that, you might want to ask yourself if refinancing a car loan is even possible. Luckily for you, it absolutely is, so you have nothing to worry about! So the question now is how soon can you refinance a car loan after purchase, specifically…
In this case, you may now want to ask yourself:
When Can You Refinance A Car Loan After Purchase?
Theoretically, assuming you have all the requirements needed to do such a transaction, you can refinance your car loan immediately after purchase as soon as you find a lender that will approve of the new loan! Which, if you think about it, would be pretty rare to find depending on how good you are at finding available lenders that will trust you enough to approve of it in the first place.
So basically, if you want to know how soon can you refinance a car loan after purchase, you might want to read more down below.
Okay, so to quote my previous article specifically talking about the details on how soon can you refinance a car loan after purchase:
“There are some specific guidelines that you need to keep in mind if you want to determine if you can refinance your car loan immediately or not.
Within The First 60 to 90 Days Of The Car Loan
- It usually takes somewhere around sixty (two months) to ninety (three months) days for you to be able to get the title of the vehicle transferred from the manufacturer or previous vehicle owner to the current lender. This means most lenders will not even consider your application to refinance if the vehicle’s title has not been transferred yet. This is one of the earliest on how soon can you refinance a car loan after purchase!
- During the application of your original loan, you may have gotten a temporary drop in your credit score. In this case, if you applied during that temporary drop, you might actually get higher interest rates for your targeted new loan. This means, unless you already have a great credit score, you might want to wait a little bit until your temporary credit score drop, levels out properly again.
Around 180 Days Or 6 Months Of The Car Loan
- Waiting at least six months before figuring out whether can you refinance a car loan immediately is a decent rule of thumb. Because this usually gives you enough time to recover your temporarily dropped credit score and allow you to qualify for better interest rates. This is usually the standard or regular rate of how soon can you refinance a car loan after purchase!
- Though another great thing to consider if can you refinance a car loan immediately, is looking at your credit history. If it is your first time applying for a car loan, or you might have had a troubling credit score in the past, you might want to wait at least a year before applying to refinance.
Two Years Or More Left Off Your Car Loan
- To actually save yourself more money in the long run, you might want to make sure that you have at the very least, two years remaining on your car loan. That is because you will actually lose the chance to save if you refinance too late in the term. Pretty much a guarantee already on how soon can you refinance a car loan after purchase. However, you will have to ask yourself if it is still worth it!
- Can you refinance a car loan immediately? Yep, but most lenders have certain requirements that they need filled but the opportunity usually only comes later on in your loan. It still applies differently from lender to lender, so you might want to ask about a lender’s requirements before or while applying.
So! That is pretty much all the details you will need to figure out how soon can you refinance a car loan after purchase! However, if you do want some more information, like I said, you might want to read up on my other articles. This has been your boy, Frank, and I gotta bounce!
Read also: “Identifying What Is A Consumer Loan (2022)”
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